Video 4:12
Gillard ventures into mining territory

Deputy Prime Minister Julia Gillard has received a barrage of criticism from West Australian mining bosses at a meeting in Perth.

Transcript

LEIGH SALES, PRESENTER: The Prime Minister has finally started meeting mining bosses one on one in an attempt to convince them to support his proposed super-profits tax.

Kevin Rudd held a supposedly secret meeting in Sydney today with BHP boss Marius Kloppers and tomorrow he'll meet one of the loudest critics of the tax, Andrew 'Twiggy' Forrest.

The PR offensive coincides with Kevin Rudd's visit to Perth tomorrow. His deputy, Julia Gillard, was sent on an advance mission today, and she had her work cut out for her, selling the tax to Perth's business elite.

Dana Robertson reports.

DANA ROBERTSON, REPORTER: Lunch in the lion's den.

Julia Gillard was dispatched to the west to mingle with the miners, an attempt to rehabilitate the Government's tarnished image.

From a distance, mining bosses have been in open revolt against the resources super-profits tax. At close range, it was no different.

RICHARD GOYDER, WESFARMERS: I'll back the directors and shareholders of Wesfarmers to spend the 50 per cent of the profits we make. ... I'll back them to spend that money more wisely than in any government, past or present.

ANDREW FORREST, FORTESCUE METALS GROUP: Surely your prime minister and your cabinet also see a emperor with no clothes. What are you going to do about putting some clothes on the emperor?

SAM WALSH, RIO TINTO: I really wanted to ask you about the consultation process, which to date, quite frankly, has been dysfunctional and purely hopeless.

DANA ROBERTSON: Julia Gillard tackled their complaints head on.

JULIA GILLARD, DEPUTY PRIME MINISTER: I don't think that a passionate debate is something we should fear. But I am concerned, as the debate rages, there is fear being generated in some parts of the Western Australian community. Today, I want to reassure that there is no need for fear.

DANA ROBERTSON: Some of the nation's most prominent businessmen are still furious that they can't get the Prime Minister's ear, despite all the talk of consultation.

ANDREW FORREST: No-one I know has been able to book an appointment with the Prime Minister 'cause he's too busy consulting.

KEVIN RUDD, PRIME MINISTER: When I was last in WA, which was I think barely a month ago, I sat down with a bunch of leaders from various mining companies.

I saw another group recently in Canberra. We'll continue to talk as is necessary. I'm sure I'm going to run into a few over there as well.

DANA ROBERTSON: In fact the Prime Minister is already trying to appease his fiercest critics by holding private meetings with mining bosses.

Today he met BHP's Marius Kloppers in Sydney. And after weeks of complaining about his own lack of access, Fortescue's Andrew Forrest will have his turn with the Prime Minister tomorrow.

Kevin Rudd won't be under any illusions about the difficulty of the sales job ahead.

ANDREW FORREST: I think Australia's had an experiment with Kevin Rudd. Let's just see how that experiment goes. I'm certainly not happy with the results from my view.

DANA ROBERTSON: The standoff with the miners has only been made worse by Wayne Swan's admission on Four Corners that some mining companies will pay almost 60 per cent tax once the new regime kicks.

JOURNALIST (Four Corners): There will be some projects that are paying 58 per cent?

WAYNE SWAN, TREASURER: Well there would be some super-profitable companies that could reach that level.

DANA ROBERTSON: The Minerals Council's wasted no time making sure it's a figure everyone hears.

MINERALS COUNCIL TV ADVERTISEMENT (male voiceover): Now, Wayne Swan has finally admitted to what the mining industry has said all along: that the new super-tax could see mining companies paying up to 58 per cent, by far the world's highest.

DANA ROBERTSON: The Treasurer's office says the 58 per cent rate would only apply in the rare event that a company had no write-offs on its company tax and it paid off all its establishment costs for a mine.

But it's an opening the Government didn't need.

TONY ABBOTT, OPPOSITION LEADER: These people are not ignorant liars. They are standing up not just for their own shareholders, but ultimately they're standing up for the half a million Australians whose jobs depend on mining.

DANA ROBERTSON: Mr Abbott says the Prime Minister should be doing less lecturing and more listening.

There'll be plenty of both tomorrow when Mr Rudd faces a community cabinet in Perth.